County deficit still growing
After discovering that Albemarle County’s financial deficit continues to grow, the Board of Supervisors delayed approval of a five-year financial plan Wednesday, and instead asked the county executive to present a budget scenario with an increased real estate tax rate.
Albemarle faces a projected $7.2 million budget deficit this fiscal year, up from an expected $4.9 million shortfall, officials said.
The new estimate raised alarm about the county’s financial situation, which has looked gloomier every time it’s been revisited during public meetings. The figures also raised questions about how the Board of Supervisors will overcome declining revenue next fiscal year.
Board Chairman Kenneth C. Boyd said the executive’s office should provide a recommendation that incorporates the 74.5 cents tax rate that was presented to the board on Wednesday. Because of declining real estate values, that would mean the average Albemarle homeowner would pay the same amount of real estate taxes as under this year’s 71 cents tax rate.
However, after heated dialogue Wed-nesday, supervisors delayed approval of the five-year plan and asked County Executive Robert W. Tucker Jr. to present a budget scenario in which the tax rate was raised enough to make up for other revenue losses, including any decline in sales tax revenue.
Board Vice Chairman David L. Slutz-ky, as well as supervisors Dennis S. Rooker and Sally H. Thomas, argued that increasing the real estate tax rate to 74.5 cents wouldn’t truly create a revenue-neutral budget.
They said that only increasing the real estate tax rate to 74.5 cents wouldn’t account for an overall decline in tax revenue generated by residents who are spending less money on retail products and new vehicles. In addition, Albemarle is facing a decline in building permits and other economic-stimulating activities.
Assistant County Executive Tom Foley, at the request of Thomas and Rooker, also said that he would incorporate another 1.5 cents into the budget scenario as a “safety net.”
The executive’s office plans to present the budget scenario to the supervisors when the board meets with the School Board on Tuesday.
Boyd said that starting a budget process that initially steers away from tax increases is the most fiscally responsible solution.
Slutzky proposed at a Nov. 12 meeting that the county executive’s office formulate a financial plan with a tax rate closer to 90 cents, which would allow the county to avoid service cuts.
From there, the Board of Supervisors would systematically decide which of those services should be cut or scaled back. Slutzky called it the most transparent procedure.
Boyd said Wednesday that starting with a budget scenario that includes no increase in the effective tax rate – while showing the public where spending was cut – would be equally transparent.
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Reader Reactions
Wouldn’t it have been refreshing if the Board had asked the County Executive to present a plan that cut spending as much as possible. This is typical government response. The former never crosses their minds. If they do increase the tax rate and thereby gain additional revenue, the Board is likely to spend it on new programs and not on existing debt. That is what often happens with new money - let’s have a new program. All of us know we cannot manage our personal finances like this.
If Slugsky wants to pay 90 cents I say let him. This tax and spend mentality has become accepted for the last few years and now it should STOP.
Albemarle schools are riddled with abuses of waste that are allowed to occur because the system lets the admin continue its wasteful practices.
An example of abuse is giving select teachers PAID vacation when policy states nothing about vacation for teachers. That substitute is being paid from education dollars!!!
How architecturally fashionable does a school need to be for children to learn?
How much is spent on technologies which are not requested by teachers?
How much extra is now being spent to use less products to clean the schools?
One would think if you use less it would cost less.
I know I am scratching the surface but you get the idea. Too bad those who spend it don’t!
These people continue to be wasteful, arrogant, and irresponsible. They need to go - every single one of them. Their initial response to almost everything is “raise property taxes.“
Times are tough - we all know that. I wish I could go to my employer and TELL HIM that he’s going to pay me more money because otherwise I can’t have everything I want. He’d laugh me out of the office, and that’s what the voters should do with the supes.
They are playing fast and loose with our tax dollars, and past statements downplaying the cost to taxpayers reveal that they are completely ignorant of the impact of their malfeasance on the “little people.“
These people are idiots. Don’t they realize that as our property values continue to decrease, so does our net wealth? Yet they want to hit us with higher taxes? Cut services. Cut A LOT of services.
Until they completely eliminate 100% of pay increases for 100% of county employees - including teachers, firemen, and cops (and I don’t mean “defer” increases - eliminate them, just as real employers in the real world are having to do), until they cut out 100% of perks for county execs and supervisors, until they demonstrate that they are serious about making county government more efficient, keep your hands out of our pockets!
How about a resolution stating that no county employee receives one penny in pay increase - not for merit, seniority, or anything else except a bona-fide and documented promotion - until the tax rate can be reduced to previous levels? That would demonstrate their commitment to the people of Albemarle County. Lacking that, any tax hike is just more of the same.
A lot of voters in Albemarle County voted for change last month. No reason why we can’t vote for change on the local level as well.
In the meantime, let’s spend a gazillion dollars on a reservoir we don’t need.
The board of supervisors has known they were running a deficit in spending for a number of months now. The tenor of this article seems as if they were surprised that the deficit continues to grow. They’ve done nothing to slow thedeficit growth. We shouldn’t be surprised at that response. They are completely out of touch. They will raise your property taxes $1,000.00 per year if not stopped.
Supervisors also seemed surprised that people are spending less on autos and retail. HELLOOOOOO. People don’t have the disposable resources they had a year ago.
Slutzky said he is researching the safety of artificial turf for athletic fields. Instead he needs to be researching ways to reduce the size of the county budget. This individual is completely out of touch with reality.
The main issue in the next local election needs to be property and sales taxes. Remember that Slutzky and company plan to raise sales taxes in the county 1 % this spring…irresponsible tax and spend liberalism at its worst. Slutzky, Rooker, and Thomas, need to be removed from office.
The responsible reaction at this point is to reduce county spending and lower property taxes. But then, they would not have our money to fritter away on useless projects.
Instead of raising taxes to cover a potential financial shortfall, reduce spending by curbing services accordingly. Do what businesses and families do to survive when financial troubles arise.
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